1 hr ago
Cable-Wire Stocks Fall as UltraVolt Plans ₹1,800-Crore Entry
Several companies that make wires and cables saw their share prices fall.
The companies mentioned include KEI, Polycab, RR Kabel, and Finolex.
Investors were concerned because a large new competitor is preparing to enter the market.
The new business is called UltraVolt.
It belongs to the Aditya Birla Group and is housed under UltraTech.
The group plans to invest ₹1,800 crore in it.
Kumar Mangalam Birla said UltraVolt wants to become one of India’s two biggest wire and cable companies within five years.
It is expected to have the second-largest capacity when it launches.
KEI, Polycab, RR Kabel, and Finolex declined in morning BSE trading on Friday, 4 September.
The declines came amid concerns about increased competition in India’s wires and cables sector.
UltraVolt, housed under UltraTech, is preparing to enter the segment with an ₹1,800-crore investment.
Aditya Birla Group chairman Kumar Mangalam Birla said UltraVolt aims to become one of India’s top two wire and cable players within five years.
UltraVolt is expected to be the sector’s second-largest player by capacity at launch.
- Who
- Aditya Birla Group, through UltraVolt under UltraTech, and existing companies including KEI, Polycab, RR Kabel, and Finolex.
- What
- UltraVolt is preparing to enter the wires and cables sector with an ₹1,800-crore investment, while several listed cable-wire stocks declined.
- Where
- On the BSE; the investment targets India’s wires and cables sector.
- When
- Friday, 4 September, during morning trading.
- Why
- Investors were concerned that UltraVolt’s entry would increase competition for existing cable and wire companies.
Existing cable-wire companies
UltraVolt and Aditya Birla Group
Competitive pressure
Existing cable-wire companies
The stock declines reflected concerns that a major new entrant could intensify competition in the wires and cables sector.
UltraVolt and Aditya Birla Group
UltraVolt is entering with a planned ₹1,800-crore investment and aims to become one of India’s top two players within five years.
Market position
Existing cable-wire companies
KEI, Polycab, RR Kabel, and Finolex were among the companies whose shares declined in morning trading.
UltraVolt and Aditya Birla Group
UltraVolt is expected to be the second-largest player in the sector by capacity at launch.
Key facts
- New business
- UltraVolt
- Parent group
- Aditya Birla Group
- Operating unit
- UltraTech
- Planned investment
- ₹1,800 crore
- Stated ambition
- Become one of India’s top two wire and cable players within five years
- Expected launch position
- Second-largest player by capacity
- Affected stocks
- KEI, Polycab, RR Kabel, and Finolex
Sources
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